South America

South American multilateral lender CAF (Corporación Andina del Fomento) is due to price a new five year bond in Australian dollars this week.

Transportadora de Gas Internacional (TGI), the Colombian gas pipeline operator, held investor calls on Tuesday as it considers a second attempt to issue internationally this year.

Brazilian infrastructure group Invepar will hit the road on Wednesday proposing the sale of a bond guaranteed by its two highest quality assets in order to finance an imposing domestic debt maturity.

Brazilian lender Banco Mercantil do Brasil is looking to buy back nearly a third of its only outstanding international bond via a tender offer.

Brazilian meatpacker JBS will look to continue on the road to recovery with a proposed benchmark-sized dollar deal next week, having received a ratings lift from S&P Global Ratings on Thursday.

Thursday’s activity in Latin America bonds showed that issuer expectations, as much as investor appetite, could define how the year ends, with one borrower standing down and another pushing through volatility.

Borrowers from Latin America are flocking to meet bond investors despite market conditions softening over the past week.

Emerging market bond investors were as quick to highlight medium-term challenges in Brazil as they were to express relief at the outcome of the first round of Sunday’s presidential election, though DCM bankers highlighted improved prospects for primary markets.

Peru wrapped up an investor roadshow on Wednesday just as the Dow Jones suffered its worst day since February to leave investors and bankers examining conditions as the sovereign weighs up a dual-tranche dollar and Nuevo sol deal.

Turkey is braced for one of the most important political events of what has been a turbulent year; the hearing of US pastor Andrew Brunson. The consequences could shape Turkey’s recovery from its recession. Elsewhere, a Russian mining company's loan showed the country is not quite closed for business, and after weeks of quiet, Latin American markets have bounced into life.

Bond market analysts and investors warned that post-election market euphoria in Brazil could fade quickly even if right-wing populist Jair Bolsonaro, who has outlined a market-friendly economic plan, wins in the second round as seems likely.

The spread on Colombia’s $2bn new issue hung in close to reoffer levels on Thursday as the speed of the US Treasury sell-off spooked some EM investors, just as it seemed the asset class was returning to form.